Coconut Oil Manufacturing (7 Steps Business Plan) Project Report

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Coconut Oil Manufacturing Business

The coconut oil manufacturing business is a profitable business with a low capital investment in this article we will show why coconut oil is on demand and how to start your own coconut oil manufacturing industry.

Coconut oil is made from coconut fruit, dry coconut fruit is called copra, coconut trees are found in the coastal area of India

Coconut oil is much better for health than the groundnut oil

Copra is having oil content around 62 to 72 %, also you can get oil from fresh coconut, and this term is known as ‘virgin coconut oil.’

Another coconut oil named as RBD (refined, bleached, deodorized) coconut oil, here bleaching is not a chemical process, bleaching is processed filtering to remove impurities by using bleaching clay

#1 Potential of coconut oil Business (Market Opportunity)

Coconut oil is one of the cooking ingredients, which is used all over India, especially in the southern part of India

Refined coconut oil has a high demand in Kerala, Maharashtra and another south state

Coconut oil is also used in the commercial sector for manufacturing of soap, detergent, hair oil, beard oil, massage oil, cosmetics, etc

Coconut oil is also used as a lubricant for machinery

Therefore the demand for coconut oil is more, so it is profitable to start the coconut oil manufacturing business

#2 Registrations & Licenses Required for oil Business

There is some documentation that you have to complete before starting the coconut oil manufacturing business

#1.Registration of Firm: You may start the small to medium scale Coconut Oil Manufacturing Business either a Proprietorship or PartnershipFirm.

If you are starting this coconut oil business as One Person Company, then you have to register your firm as a proprietorship.

For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd. Company with Registrar of Companies (ROC).

#2.GST Registration: Obtain GST number which is compulsory for every business.

#3.Trade License: Then, apply for Trade License from the local authority which is mandatory to open a business in a public area.

#4.MSME/SSI Registration: Obtain Udyog Aadhaar MSME online registration. From which you can get a government facility.

#5.BIS Certification: Apply for BIS Certification. For the different application of coconut oil, there are different quality standards you must maintain. Such as IS11470 (1985).

#6.Food Safety and Standard Authority of India (FSSAI): Coconut oil is food related industry so you have to apply for FSSAI registration.

#7.IEC code: If you are planning to export the coconut oil then you have to apply for IEC code.

#8.Trade Mark: Secure your brand with the tread mark registration.

#3 Area required for Coconut Oil Manufacturing (Location)

Area selection if a tough task in every business, you can start the coconut oil manufacturing business from at least 500 sq ft area space

While selecting the location makes sure that they are having facilities like water supply, electricity supply, drainage facility

Also, the location is must be easily accessible, the raw material sources and target market are near to the location of the processing unit

Complete all the paperwork related to the land and check out all rules that mention by local government for the location selection

#4 Raw Materials for Coconut Oil Manufacturing Business

Coconut oil is made up of copra which is dried coconut, well-dried copra with ^% moisture content is ideal raw material for the coconut oil manufacturing

Quality of the coconut oil is depending on the quality of copra, so you need to find out the huge source of Quality copra (dry coconut) supply at an affordable price.

It is advisable to contact the farmer who can supply you coconut in large quantity with high quality in low price.

You need to balance these three things that are quality, quantity, and price because you have to produce a high-quality product at a low price.

#5 Machinery Requirement Coconut Oil Manufacturing

The machinery requirement generally depends on the manufacturing process, the raw material used and capital investment

Here we listed some machinery required for the coconut oil manufacturing

Baby Boiler

Bucket Elevator

Copra Cutter

Crude Coconut Oil Storage Tanks

Filter Press

Filtered Oil Storage Tanks

Micro-filter

Oil Expeller

Screw Conveyor

Steam Jacketed Kettle

Volumetric Filling Machine

Wooden Storage Drums

Packaging Machine

#6 Coconut Oil Manufacturing Process

Step 1 Separation Of Nuts:

Broke the shell of the coconut and keep it in sun to dry, and then separate the nut from husk on next day.

Step 2 Copra Making:

Keep the nut in sun for more than three days to make copra of required moisture contain

Step 3 Reheating

Dry copra is again heated in the dryer before chopping into pieces, to obtain copra of 6% moisture contain

Step 4 Chopping:

Dried coconut (copra) cut into small pieces with the help of a copra cutter.

Step 5 Roasting:

Feed the copra pieces into steam-jacketed kettles and cooked around 70oC temperature for 30 minutes.

Step 6 Crushing:

After cooking, feed the cooked copra into the expeller continuously and press twice.

Collect the combined oil from the first pressing method and the second pressing takes place in the separate tank.

Step 7 Separation of Cake:

Filter the oil with the help of the filter press; you will get the oil cake as a byproduct

Oil cake is used as ready-made cattle feed

Step 8 Double Filtration:

Extracted oil filters twice to get the fine filter quality oil

Extraction of the remaining oil is taking place by the solvent extraction method.

Step 9 Stores in Tanks:

Store the filtered pure coconut oil in storage tanks.

Step 10 Packaging:

The packing is done using multilayered films, bottles, cans, and tins; you can pack the coconut oil into the small packets to sell directly to the customers

How you packed your own item will decide whether it will offer or not. You have to pack your coconut oil item in an attractive way so you can attract customers.

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